US refining profits above normal on gasoline supply

Reuters, 04.01.03, 10:48 AM ET NEW YORK (Reuters) - U.S. average oil refining margins slipped for the third week in a row last week, but thin gasoline supplies kept margins well above normal for this time of year, a report said Tuesday. U.S. margins slipped 91 cents to $6.21 per barrel, much above the $4 mid-cycle average, the Salomon Smith Barney report said. U.S. gasoline stocks fell 2 million barrels to 199 million barrels, about 16 million barrels less than this time last year, the federal government reported last week. Despite the drop in gasoline stocks reported last week, U.S. refiners were expecting gasoline from Venezuela soon -- the first since a two-month strike that began late last year. The first cargo should leave Venezuela on Wednesday, according to the state oil company. It will hold some 360,000 barrels. The journey takes about five days. Margins were highest in California, despite slipping $1.05 to $11.59 per barrel. Midwest margins slipped 47 cents to $7.05 per barrel. East Coast Brent margins slipped $1.22 to $6.78 per barrel. Profits were lowest in the U.S. Gulf Coast, which dropped $1.28 to $4.60 per barrel. U.S. refiners may have had a profitable first quarter this year as cold weather, and the workers strike in Venezuela bit into gasoline and heating oil stocks. First quarter refining margins averaged $5.84 per barrel, almost double the year ago level, the report said.